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Shelly has a laptop, which is, in licensing, also called a device or a client device. Why? Because theyre also servers. Well get to that in a few seconds. That laptop, it has an operating system Windows. And it has applications, certain applications installed on that laptop. When its an online service, shelly just needs to connect to the online service and consume something from an online service. Say, Office 365 a good example. What she actually needs is a user subscription. But then, in real life organisations, therell still be on premises servers. What is a server? A server is a device that runs server-side software; that serves multiple users. They can store files on it. They can send print jobs to it. Its just a device with server software. It has an operating system like the laptop. Windows Server. It may have some sort of a server software, in which people collaborate, save files. SharePoint server, to function, also requires SQL Server,